Chunghwa Telecom, Taiwan’s leading telecommunications operator, reported a 16.7 percent increase in revenue to NT$67.59 billion in the third quarter of 2026, supported by mobile services, broadband, enterprise ICT solutions and consumer device sales. Net profit surged 29.5 percent to NT$12.22 billion, while the company reduced capital expenditure by 6.5 percent during the first nine months of 2026.
The telecom operator is accelerating investments in 5G standalone networks, fiber broadband, artificial intelligence, cloud infrastructure and enterprise digital transformation while maintaining its leadership in Taiwan’s mobile communications market.
Chunghwa Telecom’s revenue, operating income, net income, EBITDA and earnings per share exceeded the upper end of its quarterly guidance and reached their highest third-quarter levels since 2009. However, the company also benefited from a one-time asset revitalization contribution.
Chunghwa Telecom Q3 2026 Revenue and Profit Performance
Chunghwa Telecom’s operating income increased 27.1 percent to NT$15.38 billion from NT$12.10 billion a year earlier.
Net income rose 29.5 percent to NT$12.22 billion, while earnings per share increased to NT$1.57 from NT$1.22.
EBITDA grew 16.1 percent to NT$25.66 billion, although the EBITDA margin declined slightly to 37.97 percent from 38.17 percent.
For the first nine months of 2026, revenue increased 10.8 percent to NT$188.95 billion, operating income rose 12.3 percent to NT$41.74 billion, and net income advanced 12.1 percent to NT$32.97 billion.
Chunghwa Telecom Capex Falls 6.5 Percent to NT$16.17 Billion
Chunghwa Telecom reported capital expenditure of NT$16.17 billion during January–September 2026, down 6.5 percent from NT$17.30 billion in the corresponding period of 2025.
Mobile network Capex declined 4.5 percent to NT$4.70 billion from NT$4.92 billion, while non-mobile Capex decreased 7.4 percent to NT$11.47 billion from NT$12.38 billion.
Non-mobile investments accounted for approximately 71 percent of total Capex, compared with 29 percent for mobile infrastructure.
Operating cash flow increased 9.6 percent to NT$49.84 billion, while free cash flow jumped 19.6 percent to NT$33.67 billion.
The combination of lower capital expenditure and stronger cash generation provides Chunghwa Telecom with financial flexibility as it expands its 5G, fiber, cloud and AI capabilities.
Mobile Revenue, ARPU, Subscribers and Churn
Chunghwa Telecom maintained its leadership in Taiwan’s mobile telecommunications market, holding a 41.2 percent share of mobile service revenue, 39.9 percent of mobile subscribers and 39.4 percent of 5G subscribers as of September 2026.
Mobile service revenue, including IoT, increased 2.9 percent year over year to NT$17.80 billion in the third quarter.
The operator’s 090 postpaid average revenue per user (ARPU) increased to NT$573 from NT$562 a year earlier, representing an improvement of NT$11.
Chunghwa Telecom reported a low 090 postpaid churn rate of 0.41 percent, highlighting customer retention in Taiwan’s competitive mobile market.
Migration from 4G to 5G generated an average monthly fee uplift of approximately 40 percent, demonstrating the revenue opportunity associated with premium 5G subscriptions.
International roaming revenue increased 18 percent year over year, providing another source of mobile service revenue growth.
5G Standalone Network Expansion Targets Over 50 Percent Population Coverage
Chunghwa Telecom is expanding its 5G standalone (SA) network to support advanced enterprise applications, network slicing and future pre-6G services.
The operator has deployed 5G SA infrastructure in major metropolitan areas and high-traffic locations, targeting more than 50 percent population coverage by the end of 2026.
The company reported that 5G penetration reached 49.6 percent among smartphone users as of September 2026.
Its strategy focuses on increasing 5G adoption, improving network monetization and enabling enterprise services that require dedicated connectivity, low latency and differentiated network performance.
Network slicing is expected to support new commercial opportunities across industrial applications, smart transportation and enterprise connectivity.
Fiber Broadband Revenue Rises 3 Percent as Gigabit Adoption Accelerates
Chunghwa Telecom reported 3 percent growth in fixed broadband revenue to NT$12.04 billion, an increase of approximately NT$350 million year over year.
Fixed broadband ARPU increased 1.6 percent to NT$822 from NT$810 a year earlier.
The fixed broadband subscriber base reached 4.478 million at the end of September 2026, compared with 4.447 million a year earlier.
Demand for higher-speed broadband continued to strengthen. Subscribers using connections of 300 Mbps or faster increased 14.4 percent, representing an additional 243,000 customers.
The share of subscribers using 300 Mbps and faster connections increased to 43 percent from 38 percent a year earlier.
Subscriptions to broadband services offering 1 Gbps or higher speeds jumped 52.3 percent year over year.
These figures indicate that higher-speed broadband upgrades are supporting ARPU improvement even as overall fixed broadband subscriber growth remains relatively modest.
Digital Services, IPTV and Consumer Cybersecurity
Chunghwa Telecom expanded its digital consumer services through bundled broadband, mobile, Wi-Fi, entertainment and cybersecurity offerings.
Subscriptions to packages combining fixed broadband, mobile and Wi-Fi services increased 13 percent year over year, marking the nineteenth consecutive quarter of growth.
Wi-Fi service penetration among fixed broadband subscribers reached 58 percent.
The company’s IPTV service, MOD, and OTT platform, Hami Video, maintained a combined subscriber base exceeding 3 million.
Consumer cybersecurity subscriptions remained above 1 million, increasing 12 percent year over year.
Direct carrier billing transaction users increased 5 percent, reflecting growing adoption of digital payment services.
These offerings support Chunghwa Telecom’s strategy of increasing customer engagement, improving retention and generating additional revenue beyond traditional connectivity.
Enterprise ICT Revenue Grows 19 Percent as AI and Cloud Demand Increases
Chunghwa Telecom’s group enterprise ICT revenue increased 19 percent year over year, supported by demand for cloud computing, cybersecurity, AI infrastructure and digital transformation.
Recurring ICT revenue also increased 19 percent, indicating continued expansion of ongoing enterprise service contracts.
Cloud services revenue surged 45 percent, while internet data center (IDC) revenue increased 26 percent.
Cybersecurity revenue advanced 22 percent, and artificial intelligence of things (AIoT) revenue grew 14 percent.
Enterprise ICT contract value increased 84 percent in the third quarter. During the first nine months of 2026, ICT contract value exceeded 1.4 times the company’s total contract value for the full year 2025.
Major contract wins included government security projects, AI data center construction, intelligent transportation systems and digital identity infrastructure.
The enterprise business group’s overall revenue increased 8.2 percent, supported by 23.2 percent growth in ICT business revenue.
AI Strategy Expands Through Google Partnership and Enterprise AI Agents
Chunghwa Telecom is expanding its artificial intelligence ecosystem through partnerships, proprietary platforms and enterprise solutions.
The operator partnered with Google to promote AI-enabled services and accelerate consumer AI adoption.
Through its subsidiary CHT InventAI, the company is providing generative AI governance solutions and AgentHub services, targeting AI agent operations opportunities in financial services and government organizations.
In October 2026, Chunghwa Telecom completed the strategic carve-out of CHT Intelligent Vision Solutions, which focuses on computer vision, intelligent video analytics and edge AI applications.
These capabilities are designed for smart cities, intelligent surveillance, transportation management and other enterprise applications.
The company is also benefiting from demand for AI data center infrastructure, with construction projects contributing to its enterprise ICT contract pipeline.
International Revenue Growth and Network Resilience
Chunghwa Telecom’s international subsidiaries reported revenue growth of 7.8 percent in the third quarter.
Revenue from the United States increased 27 percent, driven by large-scale AI supply chain projects in California and Texas.
Southeast Asian revenue increased 3 percent.
International private leased circuit (IPLC) revenue rose 33 percent, supported by the SJC2 and Apricot submarine cable systems.
Satellite-related revenue increased 9.8 percent, while satellite contract wins exceeded NT$250 million during the first nine months of 2026.
Chunghwa Telecom also opened a branch in Guatemala in October to expand its ICT services presence in Central and South America.
BABURAJAN KIZHAKEDATH
